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Technology Stocks : All About Sun Microsystems

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To: Charles Tutt who wrote (59224)	3/8/2004 1:40:31 PM
From: QwikSand	Read Replies (2) of 64865

The downgrade to junk really had me thinking over the weekend about what's relevant and what's irrelevant. I came to the following conclusion. What's irrelevant is the cash, debt and anything else on Sun's balance sheet. What's relevant is that Sun is in such sharp decline that it has been kicked out of 'the club'. They can no longer be considered one of America's leading companies, because leading companies don't issue gambler's debt. During the bubble, McNealy/Zander used to boast incessantly about the Fortune 100 CEO's/CFO's who called them personally to say "Hey, we can't get our head around this internet thing, you guys have to come in here and set us up." What CEO, with his enormous fiduciary responsibility--assuming he's not in jail--is going to make that call to a company that has been tagged as a potential defaulter? It's not (yet) a matter of real-world economics. It's a matter of perception, reputation, and shrinking sales, a toilet-bowl spiral. I'm sure companies have been kicked out of 'the club' and gotten back in, even though I can't think of any off the top of my head. But I don't think it will happen in this case, unless of course they have a big home run in consumer electronics. I can't really think of a reason to hold this stock anymore...and I'm bored with trying after three long years. Opteron Shmopteron. Party's over. Merge them with Gateway. --QS

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